Citigroup and Barclays strategists said appreciation could strengthen Asian
currencies with high yen correlation, naming the South Korean won, Singapore
dollar and Thai baht as the most likely beneficiaries. Japan and the United
States previously intervened in FX markets to support the yen after it fell to
multidecade lows. As of Monday the yen had risen over 4% vs the dollar in the
past three trading days; the won, baht and Philippine peso each gained at least
0.7% over the same period. Barclays said recent USD/JPY intervention may have
been coordinated and its spillovers to Asian FX could exceed historical
correlations, potentially further lifting yen‑sensitive Asian currencies in the
near term, particularly if the dollar weakens. Barclays also flagged that Fed
chair Kevin Warsh’s relatively dovish press conference last week helped push the
dollar lower, providing additional support for Asian currencies.
